Mazagon Dock Shipbuilders Ltd, a key player in India’s defence manufacturing sector, saw its shares fall more than 7% in early trading on Friday, May 30. This drop came after the company reported a steep 51% year-over-year decline in net profit for the January-March quarter of FY25.
For Q4FY25, Mazagon Dock’s net profit slipped to Rs 325.3 crore, down from Rs 663 crore in the same period last year. Meanwhile, revenue from operations showed only a slight increase of 2.3%, reaching Rs 3,174.4 crore compared to Rs 3,103.7 crore a year earlier. Operating profits took a much bigger hit, with EBITDA plunging 83% to Rs 90 crore from Rs 524 crore the previous year.
That said, the full financial year painted a more positive picture. The company posted a 25% rise in net profit for FY25, hitting Rs 2,414 crore, up from Rs 1,937 crore in FY24. Revenue also grew by 21%, reaching Rs 11,432 crore, underscoring solid overall growth despite a challenging quarter.
Shares were trading at Rs 3,485.4 on the NSE by 9:18 am, down 7.6%, reacting sharply to the quarterly results. Still, the stock has outperformed the broader market significantly, rallying 130% over the last 12 months compared to the Nifty 50’s 10.4% gain.
Upcoming Navy Orders Could Boost Future Outlook
Notably, Mazagon Dock has been in the spotlight recently due to anticipated Navy contracts valued at around Rs 44,000 crore. According to reports, the Defence Acquisition Council is expected to review procurement plans for 12 advanced mine countermeasure vessels (MCMVs) soon. These vessels are designed to enhance India’s maritime defence capabilities by detecting and neutralizing underwater threats, a critical need in the region’s evolving security landscape.
Meanwhile, industry watchers see these potential orders as a strong growth driver for Mazagon Dock, aligning with the government’s push for indigenous defence production and strategic self-reliance.
What This Means for Investors and the Defence Sector
While the sharp quarterly profit decline raises some short-term concerns, the company’s robust annual results and upcoming Navy deals point toward sustained momentum. Investors should weigh the current earnings pressure against the long-term growth prospects fueled by major defence contracts and India’s expanding naval capabilities.
For more details on Mazagon Dock Shipbuilders and defence sector updates, visit the official Mazagon Dock website or the Press Information Bureau.